Wheat held losses as grain shipments continued from Black Sea ports even as tensions escalated in the key export region.
Benchmark futures in Chicago traded near $6.40 a bushel after sliding 1.9% on Monday. Russia opened fire on a ship over the weekend to force the vessel to stop for checks, a continuation of hostilities in the waterway after Ukrainian drones attacked Russian vessels earlier this month.
Despite the escalation, Rabobank says exports continue from both Ukraine and Russia. Wheat remains 19% lower this year due to bumper harvests.
On Friday, the US Department of Agriculture raised its estimate for Russian wheat exports to 48 million metric tons for the 2023-24 season. That means almost a quarter of the world’s trade will now come from Russia.
